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Enter your T4 slip under foreign income.
If you live outside the U.S. you may be able to claim the foreign earned income exclusion. If you pay Canadian tax, you may be able to claim a foreign tax credit or deduction. Or you maybe able to use both the foreign earned income exclusion and the foreign tax credit or deduction.
How to report foreign income:
How to claim a credit for Canadian tax:
I. Foreign Earned Income and Exclusion
II. Foreign Tax Credit
For more help: Where do I enter the foreign tax credit (Form 1116) or deduction?
So I won’t need to complete the standard W-2 then, and can just do that other form? Neat.
incidentally, if it asks how much income tax I paid in Canada, does it mean the amount removed from my wages, or would it be referring to something else?
To enter your income under foreign income in TurboTax:
Your income tax paid would be what you paid in Canada for income tax on your tax return. The amounts withheld from your wages would be considered "income tax withholdings".
To claim the foreign tax credit:
In most cases, taking the credit works out better than the deduction. We'll help you decide which one's best for you when you go through this section.
If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit, if your situation requires it.
Click here for information on entering your T-4 in TurboTax.
Click here for information regarding foreign tax credit in TurboTax.
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